86
Notes to the Consolidated Financial Statements
6.3 Raw materials, consumables and services
In millions of
2023
2022
Raw materials
In millions of
2023
2022
47
46
86
10
196
15
23
76
41
393
147
622
585
Introduction
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Accounting policies
Other income is recognised in profit or loss when control over the sold asset is transferred to the buyer. The
amount recognised as other income equals the proceeds obtained from the buyer minus the carrying value of
the sold asset.
As part of a step acquisition, any previously held equity interest in the acquiree is remeasured to fair value on the
date of the acquisition. The difference between the carrying value and the fair value of the previously held
equity interest is recognised in other income.
6.2 Other income
Other income includes the gain on sale from transactions that do not arise from contracts with customers and
are therefore presented separately from revenue.
Gain on sale of property, plant and equipment
Gain on sale of intangible assets
Gain on sale of subsidiaries, joint ventures and associates
Gain on previously held equity-interests
Tax credits
The increase in raw materials, consumables and services is mainly driven by inflation in commodity prices related
to raw materials and non-returnable packaging.
The line 'Energy and water' contains costs related to Power Purchase Agreements (PPA). As part of its Brew a
Better World (BaBW) ambitions, HEINEKEN enters into either physical PPAs or virtual PPAs. These arrangements
are usually entered into for periods up to 10 to 15 years and contain either fixed prices or variable prices.
Other expenses in raw materials, consumables and services mainly include consulting expenses of €339 million
(2022: €321 million), telecom and office automation of €319 million (2022: €300 million), warehousing
expenses of €235 million (2022: €245 million), travel expenses of €121 million (2022: €113 million), other taxes
of €197 million (2022: €124 million), short-term lease expenses of €110 million (2022: €86 million) and low-
value lease expenses of €42 million (2022: €32 million).
Accounting policies
Expenses are recognised based on accrual accounting. This means that expenses are recognised when the
product is received or the service is provided regardless of when cash outflow takes place. Costs related to power
purchase agreements are included as part of 'Energy and water' if the own use exemption can be applied. If not,
power purchase agreements are considered to be derivative financial instruments, refer to note 11.6.
Inventory movements
Marketing and selling expenses
Transport expenses
Energy and water
Repair and maintenance
Other expenses
Non-returnable packaging
Goods for resale
3,097
6,114
1,997
2,767
1,891
968
2,843
5,624
1,766
5
2,692
1,922
834
Heineken
N.V.
Annual
Report
2023
In 2023, other income mainly relates to a gain on sale of Vrumona B.V. (Vrumona) of €195 million (refer to note
10.1).
2,621
20,077
2,347
18,618